4 GB Microdrive coming end of the year

Thanks
to Mike Tedesco for noting that IBM Storage Technology has merged with
Hitachi Storage forming the new Hitachi Global Storage Technologies. Today
HGST has announced that the Microdrive will take a four fold leap in capacity
at the end of this year. "The areal density of the 4GB Microdrive
is made possible by using a new five-layer version of Hitachi's patented
"Pixie Dust" media technology. This data storage breakthrough
is achieved by taking a three-atom-thick layer of the element ruthenium,
a precious metal similar to platinum, and sandwiching it between three
magnetic layers."

Press Release:

World's smallest hard drive now bigger: 4GB on a one-inch disk

SAN JOSE, January 6, 2003 -- Hitachi Global Storage Technologies today
announced plans to squeeze four gigabytes of data onto the 1-inch Microdrive,
the world's smallest hard disk drive. With considerable advances in miniaturization
technology, Hitachi engineers have overcome numerous magnetic recording
challenges associated with developing hard disk drives of this size. The
4GB Microdrive is expected to be available in the Fall of 2003.

The new drive will use ultra-miniaturized components, including a new
read-write head that is half the size of its predecessor and results in
a 40-percent decrease in the height at which the head travels above the
disk platter. This feature is analogous to a Boeing 747 airplane flying
one millimeter above the surface of the earth. The Microdrive's new head
technology, called the femto slider head, opens up a next generation of
head slider technology. The new technology is so small that it is equivalent
in size to a grain of table salt.

Hitachi engineers have also drastically increased the tracks per inch
to accommodate the Microdrive's areal density of more than 60 billion
bits of data per square inch. This areal density required mechanical tolerances
and accuracies to be significantly tighter in order to maintain the Microdrive's
superior data integrity and reliability.

Pixie Dust Media Technology

The areal density of the 4GB Microdrive is made possible by using a new
five-layer version of Hitachi's patented "Pixie Dust" media
technology. This data storage breakthrough is achieved by taking a three-atom-thick
layer of the element ruthenium, a precious metal similar to platinum,
and sandwiching it between three magnetic layers. Technically referred
to as antiferromagnetically coupled media, the ruthenium/magnetic layers
enable data recording at ultra-high densities while maintaining data integrity.

Other significant technical achievements include a data transfer rate
increase that represents a 50 percent improvement from the previous-generation
Microdrive. Hitachi engineers estimate that the new data transfer rates
are faster than all competitive solid-state data storage products available
today.

"The Microdrive's capacity is ideally suited for multimedia or other
data-intensive applications that need to be accessed via a handheld device,"
said Bill Healy, general manager, Mobile HDD Business Unit, Hitachi Global
Storage Technologies. "Whether users are listening to music, watching
movies on their PDA or shooting high-resolution photography, the Microdrive
enables users to focus on the task at hand -- not on the amount of memory
available in their device."

Broad Industry Support

The 4GB Microdrive is designed to the CompactFlash Type II industry standard.
HP and Eastman-Kodak are among the industry-leading companies that are
evaluating the 4GB Microdrive. The new Microdrive is expected to broaden
the variety and complexity of applications that can be run on handheld
appliances and other consumer electronic devices.

The proliferation and sharing of digital content is driving the need
for mobile devices that can run large multimedia and enterprise applications,
but are portable enough to fit in the palm of a hand. Manufacturers of
portable devices, handheld and laptop computers, digital still and video
cameras and MP3 players are among the many technology products that are
optimized to take advantage of the Microdrive's substantial capacity and
performance features.

"The HP iPAQ Pocket PC's high performance and brilliant display
make it perfect for running rich multimedia applications," said Cindy
Box, director of marketing, Smart Handhelds, HP. "The Hitachi Microdrive's
impressive capacity and portability allow HP iPAQ Pocket PC users to watch
movies, listen to music, and enrich their email experience with attachments
while enabling new business applications."

"As digital cameras continue to evolve and increase in megapixels,
consumers will take an increasing number of high-resolution images that
need to be stored on a high-capacity, portable medium," said Madhav
Mehra, general manager, Digital Capture Systems, Kodak Professional. "Kodak
is evaluating the Microdrive because its capacity and portability are
well-suited to the needs of even the most demanding digital camera user."

Product Availability

Hitachi currently offers the Microdrive in capacities ranging from 340MB
to 1GB. The 4GB Microdrive is expected to be available in the Fall of
2003. Pricing will be announced later this year.

The Microdrive is currently the CompactFlash price performance leader
with the lowest cost per megabyte in the industry. The new 4GB version
Microdrive is expected to continue this leadership tradition.

Hitachi will participate, along with its development partners, in major
industry events such as the Consumer Electronics Show and the Storage
Visions conference in January to discuss the Microdrive advancements in
greater detail.

Press Release (merger):

Hitachi establishes "Hitachi Global Storage Technologies"

Taking a bold new step for storage innovation

TOKYO, Japan and SAN JOSE, Calif. - January 6, 2003 -- Hitachi, Ltd.
(NYSE: HIT, TSE: 6501) today announced that it has created a new hard
disk drive (HDD) storage company with the most advanced technology, the
most extensive product line, and the greatest global reach in the industry.

The new company, named Hitachi Global Storage Technologies, which comprises
the HDD operations of Hitachi and IBM, is headquartered in San Jose, California.
The new company is 70 percent owned by Hitachi, with the remainder of
the shares held by IBM. Hitachi, however, will assume full ownership at
the end of 2005. IBM will have no involvement in the management of Hitachi
Global Storage Technologies.

Hitachi and IBM reached a framework agreement in June last year under
which Hitachi would purchase IBM's HDD operations for US$2.05 billion.
Since then, the two companies reached agreements regarding all related
matters, including contracts for the supply of HDDs to IBM, treatment
of intellectual property and the provision of services. Based on these
agreements, and a revision in operating bases and personnel covered by
this acquisition, the deal closed on December 31, 2002.

As an entity specializing in HDDs, Hitachi Global Storage Technologies
will bring together the mutually complementary qualities of both its founding
companies. Hitachi boasts cutting-edge R&D capabilities, such as in
perpendicular magnetic recording technology. Having invented the HDD,
IBM has extensive technological expertise backed by an industry-leading
number of patents, and top-level product development capabilities. With
an expanded product lineup, increased production capacity, and enhanced
global development, production and sales networks as a result of this
integration, Hitachi Global Storage Technologies is in an extremely competitive
position.

"The completion of this deal changes everything in the storage industry
-- no one else has the depth of knowledge and the breadth of technology
that we have to offer," said Dr. Jun Naruse, chief executive officer,
Hitachi Global Storage Technologies. "Customers will see new HDD
technologies reach the marketplace more quickly than ever before, helping
them meet their growing needs for versatile, robust and economical storage
technologies."

The company will provide the most extensive line of HDDs in the industry,
covering every major segment from consumer-focused 1-inch to enterprise-level
3.5-inch products. The worldwide sales and support capabilities of Hitachi
Global Storage Technologies will provide customers with unequaled access
to products and services.

Hitachi Global Storage Technologies aims to use its world-class R&D
capabilities and state-of-the-art technologies to be a driving force behind
further advances in the HDD format. The new company is determined to be
a leader in the HDD industry by developing products and offering support
in a timely manner to meet various needs in the IT market. HDDs are expected
to be in increasing demand for use in mobile terminals, PCs, servers and
other information appliances, as well as emerging consumer electronics
market, like car navigation systems, set-top boxes and other products.

Powerful hardware is a vital element of efforts to bolster the Hitachi
Group's solutions delivering abilities. Hitachi also sees the opportunity
to capture many synergies with Hitachi Global Storage Technologies in
the Hitachi Group's consumer electronics operations, including information
appliances. In the field of redundant array of independent disks (RAID)
storage systems, in particular, Hitachi hopes to develop worldwide storage
solutions that take advantage of Hitachi Global Storage Technologies'
powerful HDDs.

One of Hitachi's overarching goals is to leverage its competitive edge
in HDDs to exercise leadership in the IT industry by building the infrastructure
needed to support a ubiquitous information society.

Hitachi Global Storage Technologies commenced operations on January 1,
2003, integrating IBM's HDD production and marketing bases with Hitachi's
U.S. HDD sales division. On April 1, plans call for Hitachi, Ltd.'s Data
Storage Systems Division, which operates an HDD manufacturing facility
in Kanagawa Prefecture, to be integrated with the Japanese subsidiary
of Hitachi Global Storage Technologies by taking advantage of Japan's
corporate split law. Plans are also in hand for all Hitachi's HDD production
and sales locations, including sales operations in Europe and Asia, to
join Hitachi Global Storage Technologies.